2018 (12) TMI 840 - HC - GST

Unable to upload FORM GST TRAN-1 - input tax credit - migration to GST regime - Held that - The petitioner may apply to the ninth respondent, the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1, without reference to the time-frame - petition disposed off.

Summary

Issues:
- Failure to upload FORM GST TRAN-1 within stipulated time due to system error.
- Seeking directions to enable the petitioner to take credit of available input tax.
- Interpretation of circular issued by the Government of India regarding IT Grievance Redressal Mechanism for GST Portal glitches.
- Previous instances of technical glitches faced by taxpayers.
- Permission granted by the Court to apply to the Nodal Officer for issue resolution.

Analysis:
The petitioner, a registered dealer under the Kerala Value Added Tax Act, had migrated to the Goods and Services Tax regime. Due to a system error, the petitioner failed to upload FORM GST TRAN-1 within the stipulated time to utilize the input tax credit available at the time of migration. The petitioner sought directions to enable the credit of the available input tax. The Court considered a circular issued by the Government of India establishing an IT Grievance Redressal Mechanism for addressing taxpayer grievances due to technical glitches on the GST Portal. The circular outlined the procedure for taxpayers to apply to the nodal officers in case of demonstrable glitches preventing compliance with due legal processes on the Common Portal.

The Court noted that not only the petitioner but also others faced similar technical glitches and had approached the Court previously. In previous instances, the Court permitted petitioners to apply to the additional sixth respondent for issue resolution. In the present case, the Court directed the petitioner to apply to the ninth respondent, the Nodal Officer, who would investigate the issue and facilitate the uploading of FORM GST TRAN-1 without reference to the time-frame. The Court further directed that if the petitioner applied within two weeks of the judgment, the Nodal Officer must consider the application and take necessary steps within a week thereafter. If uploading FORM GST TRAN-1 was not possible for reasons not attributable to the petitioner, the authority would enable the petitioner to take credit of the input tax available at the time of migration.

In conclusion, the Court disposed of the Writ Petition by providing specific directions to address the petitioner's issue of failed upload of FORM GST TRAN-1 due to a system error, ensuring the petitioner's entitlement to the input tax credit available at the time of migration under the GST regime.